Location: Steuben County, IN | Metro: DeKalb County, IN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $290,185 | 0.36% | F |
| 3BR | $1,330 | $370,266 | 0.36% | F |
| 4BR | $1,370 | $612,225 | 0.22% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 46742, located in Hamilton, IN, part of the Steuben County, IN metro area, does not align favorably for landlords. The Fair Market Rent (FMR) set at $1,020 for fiscal year 2026 contrasts sharply with the current market rent of $968, according to Census ACS data. This indicates that landlords might struggle to achieve rents at the FMR level, potentially leading to lower-than-expected income.
Acquisition costs in the area remain high, with the median home value sitting at $357,812. However, without specific data on days on market (DOM) and the percentage of homes needing price cuts, it's difficult to gauge the exact affordability of acquiring properties. Landlords should be prepared for a competitive market and possibly higher initial investment costs.
Tenant demand is relatively stable in ZIP 46742, with a population of 3,292 and a 20.4% renter share. This suggests that while there is a segment of the population seeking rental housing, the overall demand is moderate and may not support rapid growth or expansion of rental portfolios.
Verdict: The economic landscape in ZIP 46742 presents challenges and opportunities for landlords and small-portfolio investors. While there is a consistent tenant base, the discrepancy between the FMR and actual market rent highlights the need for realistic expectations regarding rental income. High median home values indicate a robust property market but also suggest that acquisition costs will be significant. Investors must carefully consider these factors to ensure profitability and sustainability in their investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.